Being in a government position with responsibility for the security of America does not always preclude someone from attempting to steal millions from the U.S. taxpayer. While protecting the homeland from threats such as COVID-19, the former D.C. Homeland Security Commissioner, Wendy Nicole Villatoro, submitted eight Paycheck Protection Program (PPP) loan applications and 15 Economic Injury Disaster (EID) loans with the Small Business Administration (SBA). All without a business to her name.
Villatoro submitted loans on using fake businesses and inflated the number of employees, the average monthly payroll, the gross yearly revenue information, or the cost of goods sold. Despite attempting to steal up to $5.5 million in fraudulent loans, most of Villatoro’s applications were denied, leaving her with the $844,000 that she did get approved. Villatoro used the funds to pay off her student loans, pay off the car loan on a BMW SUV, and buy designer clothing and jewelry.
On November 15, 2024, Villatoro pleaded guilty to COVID-19 loan fraud. As part of her plea agreement, Villatoro has agreed to pay $844,415.24 in restitution to the U.S. Government and to forfeit items purchased with proceeds of the offense. Her sentencing is scheduled in February of 2025.
Excellent job by the COVID-19 Fraud Task Force for this case and their continued dedication to holding accountable those who engage in fraud and abuse these vital resources.
Today’s Fraud of The Day is based on article “Former D.C. Homeland Security Official Pleads Guilty to $844K PPP Fraud Scheme” published by USA Herald on November 15, 2024.
A former D.C. Homeland Security commissioner, Wendy Nicole Villatoro, has pled guilty to orchestrating a scheme to fraudulently obtain approximately $844,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. Villatoro, 40, who currently works for the U.S. Department of Agriculture, admitted to one count of bank fraud in a plea agreement filed Thursday in a District of Columbia federal court.
Prosecutors allege that Villatoro submitted a total of eight PPP loan applications to various financial institutions, along with 15 EIDL applications to the Small Business Administration (SBA). According to the U.S. Department of Justice (DOJ), each of these applications contained “materially false statements.” Villatoro reportedly fabricated details about fake businesses, inflating the number of employees, average monthly payroll, annual revenue, and costs of goods sold to secure the pandemic relief funds.
